By Providence Obuh

Microfinance Institutions (MFIs) in the country have said that the sub-sector is bedeviled by regulatory bottleneck and as a result, non-governmental organisations intending to engage in providing micro finance credit are unable to do so. They also said that the Micro, Small and Medium Enterprise Development Funds (MSMEDF) set up by the Central Bank of Nigeria (CBN) to increase financial access for micro and small enterprises is encumbered with collateral requirements making it inaccessible.

Meanwhile over 100,000 Nigerians have benefited from the MFIs through linkage to finances, sensitisation, capacity building and networking, said President, Association of Non-Bank Microfinance Institutions of Nigeria (ANMFIN) Mr. Hamid Afolabi, who also stated that the association is currently working with over 3,000 informal savings to be linked to microfinance banks in the North West.

He explained that plans are underway to initiate same across the country.   Recall, the ANMFI Nigeria emerged as a major player in the microfinance sub-sector, uniting independent MFIs under a common umbrella to build credibility and promote development of the microfinance sub-sector with a special focus on the informal sector in order to achieve financial inclusion.

According to him, “as we march towards expanding outreach to rural areas, the subsector is still bedeviled with regulatory bottlenecks; many of our non-governmental organisations that want to engage in providing microfinance credit to their target audience cannot because of legal impediments. “Also, the MSMEDF set up by the CBN to increase access has largely remained inaccessible due to collateral requirements.”